EUR/GBP Price Analysis: Buyers stepped in around 0.8700, defending a two-week-old trendline.

The EUR/GBP keeps the upward bias intact, despite piercing 0.8700 earlier in Thursday’s session.EUR/GBP Price Analysis: Break above 0.8760 to pave the way for higher prices; otherwise, a fall toward 0.8625 is on the cards.

The EUR/GBP climbs after testing a two-week upslope trendline, drawn from the September 2 and 14 lows that pass through the 0.8700 figure. During the day, the EUR/GBP tumbled to the daily low, below the previously-mentioned trendline at 0.8691, but bounced off and hit a daily high at 0.8760 before stabilizing at current exchange rates. At the time of writing, the EUR/GBP trades at 0.8737, above its opening price.

EUR/GBP Price Analysis: Technical outlook

From a daily chart perspective, the EUR/GBP dip towards 0.8700 was on the cards. Oscillators, particularly the Relative Strength Index (RSI), peaked just below entering overbought conditions three times since August 31, opening the door for a retracement. Once the Bank of England’s (BoE) decision was known, the euro gained traction, and buyers reclaimed the 0.8700 thresholds, maintaining the upward bias intact.

Switching to an intraday time frame, the EUR/GBP four-hour chart illustrates the pair as neutral-to-downward biased, with some solid resistance levels above the current exchange rate that might cap the EUR/GBP recovery. Break above the EUR/GBP 0.8760 daily high could pave the way toward the YTD high at 0.8787, ahead of the 0.8800 psychological level.

Contrarily, a drop below the S1 daily pivot at 0.8702 would expose the weekly low at 0.8691, followed by the confluence of the S2 pivot and the 100-EMA at around 0.8680/82, and then the September 14 low at 0.8625.

EUR/USD retreats below 0.9850 amid risk aversion

EUR/USD has lost its bullish momentum and declined below 0.9850 in the early American session, erasing its daily gains on the way. The sharp decline witnessed in Wall Street’s main indexes after the opening bell helps the dollar find demand and weigh on the pair.

EUR/USD News 

GBP/USD struggles to hold above 1.1300

The negative shift seen in risk sentiment provided a boost to the greenback in the early American session and dragged GBP/USD back below 1.1300. Earlier in the day, the Bank of England announced that it hiked its policy rate by 50 bps as expected.

GBP/USD News 

Gold sellers keep defending the $1,680 price zone

Gold trades around its daily opening, just above $1,670. The metal consolidated within Wednesday’s $30 range as multiple central banks’ monetary policy decisions maintained traders busy since the day started.

Gold News 

USD/JPY recovers above 142.00, stays deep in red

USD/JPY managed to erase a portion of its daily gains and climbed above 142.00 after having dropped to a fresh two-week low below 141.00 earlier in the day. Nevertheless, the pair is still down more than 1% on the day following Japan’s intervention in the FX market.

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